Strategist: Market Will Rise When Trump Makes Trade Deal

Strategist: Market Will Rise When Trump Makes Trade Deal

In this 2017 file photo, President Donald Trump and Chinese President Xi Jinping participate in a welcome ceremony at the Great Hall of the People in Beijing, China. Trump and Xi are expected to meet at the G-20 summit in Japan later this month. (AP Photo/Andrew Harnik, File) ASSOCIATED PRESS Wall Street analysts say President Donald Trump’s trade war with China has cost the stock market between $3 trillion and $5 trillion. But others say, not only is this not going to lead to a recession, but this is a buying opportunity. "Based on our recession-risk dashboard of 12 variables that have done a good job of predicting a recession, we don’t see a recession on the horizon," said Jeff Schulze, investment strategist at Clearbridge Investments at a press conference recently. "I think this pull back should be bought." He said consumer balance sheets are in a good position with household leverage at its lowest level since 1985. The firm runs the ClearBridge Large Cap Growth Fund (SBLYX). The fund is up 19.2% this year vs. the 16.5% return of the S&P 500 Index. Schulze said he looked at all six non-recessionary corrections since the 1980s. "Six-months after the lows, you usually have a V-shaped recovery of 25%, and 12 months after the low, markets are up an average of 30%." From the December low through the end of April, the S&P 500 Index rose 18%. Schulze said he felt the market had made a big move in a […]

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